Lopez Abraham

Ms. Burnette/ Mr. Okamoto

English 12/ Economics 12
Per.4/ Per.5
24 November, 2014
Raise the Minimum Wage
Most people know what the minimum wage in their state is but they dont actually know what
minimum wage is. In Linda Gormans article Minimum Wages she explains that minimum
wage is laws set legal minimums for the hourly wages paid to certain groups of worker.
Minimum wage laws were invented in Australia and New Zealand to guarantee a standard living
for all of the unskilled workers at the time. As Jonathan Grossman explains in his article Fair
Labor Standards Act of 1938: Maximum Struggle for a Minimum Wage, President Roosevelt
introduced minimum wage laws in the United States in 1938 in the Fair Labor Standard Acts of
1938. These laws were made to ban child labor, set a minimum hourly wage of 25 cents an hour,
and give a maximum work week of 44 hours. Over time these laws have changed and have
become the laws we know today. From 1938 to 2014 the minimum wage has risen from 25 cents
an hour to $7.25 an hour.
President Obama wants to raise the Federal Minimum Wage from $7.25 to $10.10 an
hour. He hopes that by 2017 the minimum wage will be raised and if it is raised it well help
about 28 million people battle poverty in the US. The reason President Obama wants to raise the
minimum wage is because at this time in history, 99% of the country's income is going to 1% of

the population. This means that the rich are getting richer and the poor are getting poorer. Obama
wants to fix that because he knows that a strong economy starts with a strong middle class. He
knows that around 47 million people in the United States are facing poverty thats why he is
trying to pass the bill that will raise the minimum wage.
Some states have raised the minimum wage higher than the national minimum wage. In
Sally Clarks article, Why Seattle Raised Our Minimum Wage, and Why America Should Too,
she discusses how Seattles minimum wage is well above the national minimum wage. The
national minimum wage is $7.25 an hour while the minimum wage in Seattle is well over $9
dollars an hour. The city of Seattle is thriving because of this, poverty is at an all time low and
more money is being spent and being circulated back into our government. Seattle is not the only
state to have their minimum wage raised higher than the national minimum wage. In the article,
Raise the Wage written by the U.S Government it informs the reader about states that have a
raised their minimum wage higher than required by the government. 13 of the 50 states have
already raised their minimum wage well above $7.25 an hour. All of these states have recognized
the importance of raising the minimum wage higher than it is as of now. While only 13 states
have raised their minimum wage, these states have shown promise of what can happen if every
state raises their minimum wage.
To this day the U.S government has not kept the minimum wage up with inflation. In the
article 7 Reasons why the Minimum Wage should be raised author Robert Reich informs the
reader that minimum wage is worth less today than it was in 1968. The reason for that is
inflation, in 1968 people earning minimum wage might have been making less money bit at the
time the U.S dollar was worth more. Although the minimum wage has been raised over the past
30 years, it has not been raised enough to keep up with inflation. In Lawrence Wittners article,

The Minimum Wage should be raised she informs the reader that if the government kept up
with inflation the national minimum wage would be $10.74 instead of $7.25. A big reason the
minimum wage has not been raised that high is because the government pleases big corporations
and these corporations do not want to pay their workers more money than they have to.

In the United states 66% of low income workers work for big corporations like
McDonalds and Wal-Mart. In Elizabeth Warrens article, 17 million reasons to raise the
minimum wage she explains how the only reason companies have made so much money in the
past decade is because the minimum wage has not been raised. Big corporations pay their
workers minimum wage because they want to make a bigger profit for themselves so they get
paid more. Making as much money as they do, companies like McDonalds do have a big impact
on the minimum wage rising because some people want to keep these companies happy and

making as much money as possible. In the article The minimum wage should be raised author
Lawrence Wittner informs us that the CEO of Wal-Mart made a total of 20.7 million dollars in
2012. The reason he made that much money is because Wal-Mart is one of those companies who
pays their workers minimum wage and is happy that the minimum wage has not gone up. Wittner
also informs us that a full time worker earning minimum wage makes $15,080 dollars a year.
These big corporations being the multi-billion dollar companies that they are can afford to pay
their workers $10.10 an hour. But the only thing these corporations care about is making a big
profit and they will do anything to make a profit.
Some people that are against raising the minimum wage argue that jobs that pay
minimum wage are incentive for kids, so they could graduate high school and actually want to go
on to college so they can earn more than minimum wage. In Rex Huppkes article, The
Argument against Raising the Federal Minimum Wage he quotes Allen Sanders, who said I
want people to have more command in the workplace, I want them to have much more than
$7.25 an hour. I just dont want McDonalds to be the place where they can get that. He is saying
that people should make more money just not working at a place like McDonalds or Wal-Mart.
But what he doesnt take into account is that its the people working at these places who need
that extra money to support their family. According to Warren in 1968 a parent making minimum
wage was enough to keep a family of 3 out of poverty, today minimum wage is not enough to
keep a parent and one child out of poverty. Any high school student knows that even if the
minimum wage is raised the money earned is enough to have stability in life, but its not enough
to live the life that people want. In Reich article he also agrees with Warren explaining that by
raising the minimum wage kids are not going to drop out of high school because growing up kids

learn that making a little more money in the short run is not the best thing for them in the long
run.
There are many other reasons why some economists believe that raising the minimum
wage is not the best idea. For example, some economists believe that if the minimum wage is
raised, then the prices of consumer goods and services will raise. In Joann Weiners article
Maybe raising the minimum wage isnt such a good idea after all she informs us that if
companies are forced to raise minimum wage, then they will have to raise their prices as well
causing them to lose customers who wont be able to afford their goods. Raising the minimum
wage is like a domino effect because it just doesnt affect the workers, but the owners and
consumers as well. But on the opposite hand, some people believe that this is just a theory and it
will not happen. One of those people is Reich, Reich like many others believe that prices for
goods and services will not go up because the companies that do pay minimum wage are in a
competitive market. This means that if one company raised their prices and others dont, the
company that raises its prices will go out of business due to the fact that consumers will shop at
the place with the cheapest prices. Meaning that no company would consider raising their prices
because they know that that will do nothing but cause harm to their profit and thats all they care
about making a profit.
Another reason people do not want the minimum wage to be raised is because they
believe that if it is raised, then small businesses who dont have the money to pay their workers
will go out of business. In Reich article he states that if small businesses do raise their prices they
will lose customers and then go out of business due to lack of sales. They believe that small
businesses will be at stake of going out of business if the minimum wage is raised, but just like
everything else there are two sides to this. In the article Small business support increasing the

minimum wage to $10.10 written by Small Business Majority, it informs the reader that 57% of
small business are in favor of raising the minimum wage to $10.10. More than half of all
businesses are in favor of raising the minimum wage because they know that in the long run they
will make more money. Small business owners know this because 82% of small businesses are
already paying their workers more than the minimum wage. By doing these workers are happy at
work which means they are more productive and do a better job, what all this adds up to is
happier customers and more money in the owners and workers' pockets. This is a win, win
situation for the owners and the workers. Not to mention that consumers will have a better
shopping experience as well.
Many people believe that by raising the minimum wage the only people that will benefit
from this are teenagers. In an article published by the U.S Department of Labor it states that 88%
of people who would benefit from the minimum wage being raised are 20 years and older. This
means that the people that are benefitting from this are people who have bills to pay and kids to
feed not just teenagers who have an after school jobs but people who are paying bills every
month. Reich also states in his article that most people earning minimum wage are the head of
their households, and they are not making enough. These people earning minimum wage and
working full time are not making enough money to keep their families out of poverty. These
people arent just teenagers who are working to have spending money they are working to feed
their families and put a roof over their heads.
Although they are some setbacks on raising the minimum wage not everything that
comes from this might be good, the benefits of raising the minimum wage to $10.10 an hour
outweigh the cost. Raising the minimum wage will not just benefit the people who need it, but it
will also help the government. In Andy Sterns article Why we need to raise the minimum

wage he explains that by raising the minimum wage the government will save millions of
dollars because less people will need help from the government. Since people will be making
more money, less people will ask the government for help like food stamps and other economic
help they receive. In the article Congress should prioritize raising the minimum wage author
Mijin Cha explains that with the minimum wage being raised people will be spending more
money and all of the money being spent will circulate into our government and will be used to
reconstruct our economy. We are helping our government by raising the minimum wage, but we
are also helping ourselves. In Warrens article she explains that its not just adults benefiting from
this, but 17 million kids will benefit from this as well because their parents will be making more
money thus allowing them to live a more stable life. This affects everyone and more good will
come from this bill than harm, so it is worth the risk. Thats why so many people are behind this
bill and want it to pass.

This is the best way to help our economy out and it is also the fastest way to fix our
economy. Cha also explains that with the minimum wage being raised people will go out and
purchase more goods and this will help strengthen our economy. Clark also argues the same
thing in his article explaining that since workers are getting paid more money they will be

spending that money at a faster rate. The reason for that is because knowing they have the money
to buy goods that they could not afford before because it was too expensive or because it was not
necessary in the household. Not only will more expensive items be purchased, but according to
an article published by the U.S Government more goods and services over all will be purchased,
this means more everyday items will also be purchased at a faster rate. This means that the
economy will recover faster than it normally would.
As someone who grew up in a poor neighborhood, I can say that raising the minimum
wage would help a lot. A lot of those teenagers that have a job and are getting paid minimum
wage are the head of their household, sometimes they are the only ones bringing in a check every
two weeks. Most of the time people have to find 2 or more jobs just to have enough money to
pay bills and buy groceries because the minimum wage is so low. But Congress doesnt see that
because they are more concerned about keeping the 1% of the country happy, and why is that,
its because they are the wealthy ones. The minimum wage should be raised to help the other
99% of the country battle poverty and keep food on the table and a roof over their heads.
It is not fair that people have to live in poverty just because Congress does not want to
raise the minimum wage. One of the biggest supporters of raising the minimum wage is
President Barack Obama. On national TV he stated that In the wealthiest nation on earth,
nobody who works full time should have to live in poverty-nobody, not here in America. He is
completely right about this, how is this country supposed to be where dreams come true if
someone who works 40 hours a week cannot afford to put food on the table for his/her family.
This is where the US needs to change and strengthen their middle class and the only way to do
that is to raise the minimum wage. By raising the minimum wage it will create a more stable life
for many and many others will have a chance to get out of poverty. Ultimately it is up to

congress to pass the bill, but there is something you can do to help you can go to
www.whitehouse.gov/raise-the-wage and add your name if you agree that the minimum wage
should be raised. You can also add your story and how raising the minimum wage would affect
you and your family. The only way congress will raise the wage is if they see the country is
behind it. Although raising the minimum wage is not a full proof plan and the government cannot
say its nothing will go wrong the benefits of raising the national minimum wage to $10.10 an
hour outweigh the cost.

Works Cited
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World Report, 11 Mar. 2013. Web. 28 Oct. 2014.
Clark, Sally J. "Why Seattle Raised Our Minimum Wage, and Why America Should Too."
CNN. Cable News Network, 01 Jan. 1970. Web. 24 Oct. 2014.
Huppke, Rex. "The Argument against Raising the Federal Minimum Wage." Chicago
Tribune. Chicago Tribune, 10 Mar. 2014. Web. 28 Oct. 2014.
Jonathan, Grossman. "U.S. Department of Labor -- History -- Fair Labor Standards Act
of 1938:." U.S. Department of Labor -- History -- Fair Labor Standards Act of 1938:.
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Linda, Gorman. "Minimum Wages." : The Concise Encyclopedia of Economics. Library
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"Minimum Wage Mythbusters." - U.S. Department of Labor. U.S Department of Labor,
n.d. Web. 30 Oct. 2014.
Reich, Robert. "Robert Reich: 7 Reasons Why the Minimum Wage Should Be Raised to $15
an Hour." Alternet. AlterNet, 9 Apr. 2014. Web. 29 Oct. 2014.
"Small Business Majority." Report. Small Business Majority, 6 Mar. 2014. Web. 30 Oct. 2014.

Stern, Andy, and Carl Camden. "Why We Need to Raise the Minimum Wage." Los
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USA Government. "Raise the Wage." The White House. The White House, 10 Oct. 2014.
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Warren, Sen. Elizabeth. "OPINION: 17 Million Reasons to Raise the Minimum Wage."
ABC News. ABC News Network, 25 Mar. 2014. Web. 30 Oct. 2014.
Weiner, Joann. "Maybe Raising the Minimum Wage Isnt Such a Good Idea after
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